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Thursday, August 4, 2011

Hold On Tight

As I write this, the Dow is down 365 points, which certainly makes lots of people nervous. I wish I had new insights to offer or new words of wisdom, but I don't. Periods like now are part of the deal of being invested in stocks - the perils of short-term volatility in exchange for expected long-term returns that beat inflation.

Selling at times like this is a bad idea, because at some point markets will turn and we can't know when that will happen. Any money invested in stocks should be money that isn't needed any time soon, so that it can ride out scary times like this.